So how do you trade without someone in the middle holding the funds?
1️⃣ You Create an Offer to trade your bitcoin or choose from an existing offers list.
2️⃣ When a contract is initiated, a multi-signature escrow BTC address is created. This address temporarily holds the seller's Bitcoin, but it requires 2 out of 3 keys to unlock.
3️⃣ The Three Keys:
🔑 One key is held by the seller.
🔑 One key is held by the buyer.
🔑 One key is held by Hodl Hodl (used to intervene in a dispute during the trade).
4️⃣ The Fair Swap: The buyer sends the fiat payment to the seller via an agreed-upon method (bank transfer, etc.).
5️⃣ The Release: Once the seller confirms receipt of the payment, both the buyer and seller collaboratively sign to release the Bitcoin from the escrow to the buyer.
🔥 The crucial takeaway: Hodl Hodl cannot run away with the funds. We cannot freeze or halt withdrawals. The power remains with the traders.
